LAS VEGAS – Cisco says millennials now watch 70% of TV online, and consume twice as much mobile video as older demographics and its Visual Networking Index (VNI) forecast indicates that by 2020, 82% of the Internet’s traffic will be video.
However, while viewing is moving to IP, global broadcast pay-tv is still a $400 billion market despite subscriber losses says George Tupy, market manager with Cisco, still a major supplier of set top boxes.
Tupy notes, for example, that ESPN has 100 million unique visitors per month to its web properties and is approaching $500 million in annual digital revenue, which is the equivalent of $0.42/sub/month. However linear ESPN is still pulling in $7.20/sub/month, and ESPN2 another $0.80/sub/month from the tradition TV business. The example he says underscores how going multi-platform with all of your video assets “doesn’t make sense with today’s operating models” because the very nature of broadcast TV still involves high fixed costs, and few variable costs.
He contends there are better solutions than pay-TV alone, or OTT alone. Tupy says one way the pay-TV community can exceed both broadcast and OTT is by committing to the highest available video quality, everywhere, on any device, no compromises, which means:
1. Video that starts instantly.
2. With rock-solid picture and sound.
3. That only pauses when the viewer says so.
4. And that same stream, is not 30 to 60 seconds behind what’s on TV.
At CES, Cisco is showcasing a number of extensions to its Infinite Video Platform (IVP), a cloud video entertainment solution that helps deliver live, linear, on-demand, and over-the-top TV services to multiple screens. It’s designed to create a “blended environment that qualitatively exceeds what’s possible in the individual “silos” of broadcast and OTT-delivered video,” says the company.
Cisco says the platform helps solve hurdles such as how to launch new, IP-based services on legacy boxes, as well as delivering video quality everywhere, accelerating service creation, and a new advanced watermarking method designed for eliminating live streaming piracy, still a major concern to content owners. The platform can also prepare networks for the growth in IP traffic and video services with Cloud Scale Networking solutions.
Cisco also unveiled its video innovation community, Infinite Video Platform Labs, where its carrier customers can test new features with users before making them generally available. Customers and end users can provide crucial feedback to make these features, and the IVP roadmap, more relevant. Yes, Israel’s leading providing of satellite-based multichannel video, is among the first operators to sign on.
“One of the benefits of moving to IVP is the ability to innovate faster at lower cost,” said Yitschak Elyakim, CTO of Yes. “Gone are the days of costly professional services engagements to make minor changes with high downtimes. Being able to provide immediate feedback, and adapt the functionality accordingly, is a critical success factor in the new video world.”
“We are releasing new features for IVP every two weeks,” said Rajeev Raman, Cisco’s senior director of product and strategy, service provider video software. “IVP Labs demonstrates our commitment to a common code that continuously expands capabilities while improving quality. Our aim is simple: to create a community in which our customers – and their customers – can directly contribute to shape the IVP roadmap and help define the future of video.”
Working closely with the IVP product team, Yes designed and tested a feature that delivers a personalized user interface to different audience segments and viewers. This new capability is fully integrated with its personalized recommendation engine.
IN OTHER CES NEWS Hyundai Motor is collaborating with Cisco to create a platform optimized for connected cars, which will help enable two-way communication both internally between the car’s systems and externally with road infrastructure, other vehicles, Internet of Things (IoT) devices, and the cloud.
Ericsson and Cisco have announced they will extend their strategic partnership to Include new Wi-Fi solution offering called Evolved Wi-Fi Networks (EWN). EWN combines Ericsson’s mobile access, core networks and applications with Cisco’s Wi-Fi portfolio, to provide Wi-Fi to Ericsson’s mobile, cable and other industries customers.
Consumer electronics editor John Bugailiskis is in Las Vegas this week covering CES for Cartt.ca.
